Factors that can push you to get high risk auto insurance

By Jasper EricksPublished: Monday, October 18th, 2010

There are a lot of factors that affect your approval for an auto insurance policy. These factors are often evaluated based on statistical information. Studies have been made for car insurance companies to know who among applicants are high-risk and who are not. If applicants are considered as high risk, then the approval is less likely or you will be given a higher premium to pay. Auto insurance companies want policyholders that will not cause them to be bankrupt so they are careful who they pick and give insurance to. High risk drivers are the ones who are more prone to accident and more accidents means more expenses to be covered by the car insurance policy. More money going out is not what every growing business wants so they try their best to keep the money in and keeps it coming in. So, how would you evaluate yourself if you would be considered to get a high risk auto insurance?

Age is one of the factors that affect your premium. Studies show that younger drivers are more reckless on the road than older ones. Because they are new to driving, they tend to be involved in several car accidents so they are considered as high-risk drivers. Even if these are just minor accidents, like a small dent on the bumper of the car, it still needs repair and usually these are covered by auto insurance.

A more expensive car is also considered to be high-risk because if ever it was engaged in a car crash, the repair expense is much more than a regular car. So in comparison, auto insurance companies prefer policyholders who have cars that when damaged is less costly.

Gender also has an influence on the amount of auto insurance premium that will be given. Most people are under the impression that women are more reckless than men. Believe it or not, women get lower car insurance premiums than men because studies have shown that men are more involved with major car crashes than women. Because of their aggression on the road, they are considered as high risk drivers and they are given a higher premium to pay.

Lastly, the most obvious factor is one’s driving record. When a person has a poor driving record, the impression that it gives the insurers is bad. If the person is reckless, higher is the possibility that he or she will be in an accident again and that means repair costs, medical bills, and legalities to cover.